Flipkart, India’s leading e-commerce marketplace, has announced an investment – a mix of primary and secondary capital – from SoftBank Vision Fund, the world’s largest technology-focused investment fund. This is the biggest ever private investment in an Indian technology company, and will make the Vision Fund one of the largest shareholders in Flipkart.
The investment is part of the previously announced financing round, where Flipkart had raised capital from three of the world’s premier technology companies – Tencent, eBay and Microsoft. After this financing round, Flipkart will have in excess of US $4 billion of cash on balance sheet.
India has a thriving Internet market with close to 500 million Internet users and as per market research, the Indian e-commerce market is expected to grow at a five-year CAGR in excess of 30 per cent.
“This is a monumental deal for Flipkart and India. Very few economies globally attract such overwhelming interest from top-tier investors. It is recognition of India’s unparalleled potential to become a leader in technology and e-commerce on a massive scale. SoftBank’s proven track record of partnering with transformative technology leaders has earned it the reputation of being a visionary investor. We’re excited to welcome the Vision Fund as a long-term partner as we continue to build our business with a focus on serving the needs of all Indians, and driving the next phase of technology adoption in India,” said Co-Founders of Flipkart, Binny Bansal and Sachin Bansal.
As a leading innovator in Indian e-commerce, the funding round further solidifies Flipkart’s balance sheet and will help accelerate investment in driving continued market leadership.
“India is a land of vast opportunity. We want to support innovative companies that are clear winners in India because they are best positioned to leverage technology and help people lead better lives. As the pioneers in Indian e-commerce, Flipkart is doing that every day,” said Founder and Chairman & CEO of SoftBank Group Corp., who previously publicly announced his long-term commitment to investing in India, Masayoshi Son.
“The Vision Fund is proud to be part of this landmark transaction which is a strong endorsement of India and its thriving economy. We look forward to being a part of Flipkart’s journey towards becoming one of the most successful e-commerce companies in the world,” said CEO of the Vision Fund, Rajeev Misra.
The Flipkart Group includes well-known brands such as Myntra, Jabong, PhonePe, Ekart and eBay.in — front-runners in online fashion and lifestyle, digital payments, supply chain and logistics, and e-commerce — besides the parent company. Since 2007, Flipkart has driven forward a behavioral shift in Indian consumers and enabled the broader acceptance of e-commerce. Flipkart has amassed exceptional scale in India through customer-centric innovations that have made online shopping a seamless, accessible and affordable experience for over 100 million Indians.
SoftBank has an India portfolio spanning e-commerce, ride sharing, digital payments, hospitality, clean energy and telecommunications, which is valued at over US $6 billion.
Completion of the investment is subject to customary regulatory approvals and closing conditions.
Goldman Sachs & Co. LLC served as financial advisor and Gunderson Dettmer LLP served as legal advisor to Flipkart. Citi served as financial advisor and AZB & Partners served as legal advisor to the SoftBank Vision Fund.